Economic downturn from COVID 19 could affect foreign nationals and it might also make worries for their job insecurities. Furlough and redundancy creates fear to foreign workers and their family members to stay in the UK and many of them need to keep their jobs in order to maintain their visa status and their right to work.

Tier 2 Visa and the government’s furlough scheme

With COVID-19 furlough scheme, many employers have been forced to cut the pay for all workers below the salary limits and Tier 2 visa holders are not exceptional. Home Office allow sponsors to temporarily reduce the salary of a sponsored workers to 80% of the salary on their COS. The salary can fall below the normal threshold without employers having to stop the sponsorship. However, it only applies to businesses which have temporarily reduced or ceased trading. The pay-cut cannot be permanent and the salary must return to its original level once the trading returns to normal.

Redundancy and curtailment of Tier 2 Visa

Home Office has yet to announce new update or concessions for foreign nationals at risk of losing their jobs. If a Tier 2 worker is redundant, the employer must notify the Home Office about the cease of employment and the reason of stopping the sponsorship within 10 working days. Tier 2 status does not, on its own, invalidate from stopping work. The Home Office needs to initiate the process of visa curtailment and issue a curtailment notice to the Tier 2 visa holder. There is not, however, a set time frame for this. Tier 2 visa holder can lawfully remain in the UK until the curtailment notice has been given. The curtailment notice shorten Tier 2 visa and giving permission to stay in the UK to 60 calendar days. The curtailment will also apply to any dependant family members.

If you have lost or are at risk of losing your job, you need to consider your options. If you are able to find another job with a sponsor, you can move to the new employer. You may also be able to apply in a different visa category. If you are not able to find a new employer or any other way to make any application in the UK, you and your family are expected to leave the UK before the expiry date.

To apply for another Tier 2 visa once you’ve left, you will need to wait another year as a “cooling-off period” to return to work in the UK. It is very important that you need to find another job with an employer who has Tier 2 sponsor licence before your expiry date.

Indefinite leave to remain with furlough scheme

There is currently minimum income threshold for Tier 2 settlement which is £35,800. The employer as a sponsor also needs to provide confirmation of employment for the foreseeable future. Home Office does not update the ILR implication with payment cut due to furloughing. We will update once we have more information.

Furlough and Tier 5 workers

There is no specific concession for Tier 5 workers. Tier 5 workers can be placed in a furlough scheme depending on a visa category. Tier 5 Temporary workers will be able to apply for Tier 2 in the UK depending on the subcategory. Tier 5 Youth Mobility scheme visa will not be affected by redundancy or furloughing as YMS visa holders can take up any employment they choose.

Spouse Visa and pay cut

Unfortunately, the Home Office has not provided any concession for spouse visa holder or sponsor regarding minimum income requirement. If you and your family member are intending to make visa application or extension, apply as soon as possible. Your income should be assessed as it is at the date of application, even if the application is on hold and you are at a risk of furloughing or redundancy. If your salary subsequently drops or you lose your job, you will have to see if you can meet the income threshold in other way.

Visa holders and claim income benefit

Most of visa holders are forbidden to access public benefit such as income benefit or universal credit. They have condition that there should be ‘no recourse to public fund’. The government, however, has issued guidance which confirms that visa holder might sill claim ‘Statutory Sick Pay’ and ‘Contributory Employment and Support Allowance’.